Thursday, November 8, 2007

seminar I went to

The other day, I finally finished writing my two e-books. One is on using your IRA to buy real estate and the other is investing and managing apartments. Regardless of your level of investing...you will find tips that will help you. Down load your free copy today!

This past weekend I went to a cool real estate seminar from www.landtrust.net This company is the only one with this unique way of putting property in a land trust. Using their system is not a alternative, but a new way to do everything (short sales, foreclosures, Self directed IRA, seller financing, etc)

It is a very cool option for investing. This is how it works... You find a motivated seller. You ask them questions about the property to gauge their level of desire. The seller agrees to hold their equity (or at least majority of it). You the investor, explain all of the benefits of course (benefits listed below). What is cool, is that the seller doesn't have to worry about making the payments, maintenance, paying taxes and mortgages...you the investor will pass on those fees to a buyer. This is called a triple net lease...this is where the tenant pays for everything. Major franchises do this when they lease space.

The property goes into a trust something like a escrow. The trust makes all of the payments on the property. The home seller actually gets to write off taxes as well. So what the investor does is negotiate an agreed price/value for the home now, not what it could be. The home seller, will then get their remaining equity, when the investor refi- or sells the property.

So the home is in a trust. The beneficiaries of the trust is
the original seller
the investor
the resident person living in the home


By doing it this way, it eliminates liens and judgments. It is a very cool system.


With the house in the trust, the investor, pumps up the value of the home 5%. This is where the investor makes their money. So the investor advertises the home, with "no bank qualifying, little as 2 monthly payments, no credit check etc.

The buyer pays more in monthly mortgage if they would of bought the house, but they benefit, because if they don't have good credit they can get it. It is like a lease option, but it really isn't I will explain later. Plus rather than putting 20% down the traditional way they can move in.


If you did a lease option...the person moving in puts a down payment on the property. Now since they have the money in, they have equitable interest in the property. If they happen to stop paying the mortgage, you the homeowner can not evict them, you have to do a judicial foreclosure...which means money out of your pocket and they will be staying rent free. Not only that it violates the due on sale clause from the bank. Sure a lot of people do lease options, with out the bank knowing, but like driving a car with out a seat belt all it takes is one accident.


Here are the selling points.

  1. transfer full ownership including tax benefits with out title transfer
  2. acquire (or sell) property of all types without cash or credit...or title transfer
  3. Shield any property from liens, lawsuits and judgement, including IRS liens
  4. trade income tax benefits for higher rents from a lease tenant
  5. charge much lower after tax rent while receiving more per month
  6. take over loan payments with out a due on sale clause
  7. transfer real estate with one document, with out escrow involvement
  8. structure equity shares safely and effectively with out Tenants In Common
  9. Structure lease options with out possible "equity" claims to forestall eviction
  10. structure all creative financing objectives safely without the threat of actions by others
  11. put sellers who would never trust creative financing or investors at ease
  12. structure partnerships without standard income tax reporting obligations
  13. hide real ownership from all prying eyes
  14. avoid reassessment and property tax increases when transferring ownerships
  15. avoid re conveyance (transfer) fees when transferring ownership interest
  16. convert realty (the property) to personalty, while still qualifying for 1031 real estate tax differed exchange exemption
  17. avoid "dealer status" when acquiring multiple properties
  18. delay taxation on capital gains when transferring ownership
  19. maintain complete privacy and anonymity of ownership
  20. avoid probate upon the death of an owner
  21. attain simplicity in multiple ownership (only one party need sign documents)
  22. structure safe and profitable leases and options with the land trust
  23. avoid public disclosure of acquisition and sales price
  24. avoid partition during a dissolution of a business partnership or a marriage
  25. avoid the necessity of new title insurance when ownership is transferred
  26. certain real estate brokerage regulations can be side stepped
  27. eliminate damage by spousal claims and sabotage in marital disputes
  28. acquire foreclosures safely and simply without bank involvement
  29. avoid seasoning issues and double escrows in flips and assignments
  30. structure simple time shares with vacation property
  31. handle foreclosures bailouts without equity stripping and violation of civil code regs
  32. make big money fast with tenant/buyers with minimal cash and poor credit
  33. manage out of area income property with out cost or personal involvement
  34. acquire grossly over encumbered and over leveraged property for big profits
  35. own a home for years and still qualify as a 1st time home buyer loan
  36. sale through lightening fast closings with out escrow or title involvement
  37. enhance your credit strength and leverage by not showing an income property schedule on mortgage applications
  38. designate your ROTH IRA as the beneficiary of your trust and earn major dollars with out ever paying any income tax.

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